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Mighty River Power Limited has made an offer of NZ$250 million (plus up to NZ$50 million of over subscriptions) of unsecured, subordinated, redeemable, cumulative interest bearing capital bonds.

The proceeds from the offer will be used for general corporate purposes including the repayment of bank debt and extending the average term of MRP's funding profile.

Expected Credit Rating: BB+ by Standard & Poor's.

Issue Amount : Up to NZ$300 million.

Maturity Date: 11 July 2044 (subject to early redemption).

Reset Dates: 11 July 2019 and every fifth anniversary of that date.

Interest Rate: MRP has indicated that the minimum Interest Rate that will apply for the period from application until the first Reset Date (11 July 2019) will be within a range of 6.80% to 7.00% per annum (inclusive of margin). Confirmation of the minimum Interest Rate and the Initial Margin will be provided following a book build process on 17 June 2014. The actual Interest Rate to apply for the period application until the first Reset Date (11 July 2019) will be advised on the Rate Set Date, and will be the higher of (1) the minimum Interest Rate provided following the book build process, and (2) the 5 year swap rate as at the Rate Set Date plus the Initial Margin component of the minimum Interest Rate set during the book build process. For each subsequent interest period, the Interest Rate will be reset at each Reset Date in accordance with the terms set out in the Offer Documents.

Interest Payment Dates: Interest is scheduled to be paid quarterly on 11 January, 11 April, 11 July, and 11 October of each year.

Minimum Application: Minimum application of NZ$5,000 and in multiples of NZ$1,000 thereafter

The MRP Capital Bonds have a maturity date of 11 July 2044 but may be redeemed by MRP from 11 July 2019 or earlier under certain circumstances. MRP expects Standard & Poor's will assign intermediate equity content to the MRP Capital Bonds - treating 50% of the principal and interest as equity for credit rating purposes - for up to 10 years. Please read the attached Offer Documents to fully understand the terms of the offer, including the redemption triggers and the Interest Rate resetting process that will take place at the Reset Dates.



Expected Key Dates

Offer Documents Available: 4 June 2014
FMA Consideration Period Begins : 4 June 2014
Bookbuild Date: 17 June 2014
Announcement of Minimum Interest Rate and Margin: 18 June 2014
Opening Date for the Offer: 18 June 2014
Closing Date for the Offer: 5.00pm on 8 July 2014
Rate Set Date: 9 July 2014
Listing Date: 11 July 2014